Project Monitor - 16 April 2015 by Nikita

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Vol.14 No.24

502 new projects announced in March PROJECTSTODAY

total of 616 new projects worth `47,461 crore were announced in March, of which 502 were greenfield projects, 100 were plant modernisation and the balance 14 were brownfield projects. A total of 616 new projects worth `47,461 crore were announced in March, of which 502 were greenfield projects, 100 were plant modernisation and the balance 14 were brownfield projects. The announcement of a 4,000MW coal-based ultra mega power project in Etah district of Uttar Pradesh by Power Finance Corporation lifted the overall fresh investment figures for the month. The project, to be executed on BOT basis, is expected to cost around `25,000 crore. Out of the 616 projects, the promoters of 313 projects, mostly in the power distribution and real estate sectors, are yet to firm up project costs, as either the scope has not been finalised or the location is yet to be fixed. Of the 10 mega projects valued at `500 crore or more announced in March 2015, two were in the manufacturing sector. Seya Industries plans to set up a 3.6-lakh tpa sulphuric acid unit at Tarapur Industrial Area, Palghar, in Thane district of Maharashtra, with an investment of `700 crore, and Southern Railways intends to set up a `550-crore rail coach factory in Palakkad district of Kerala. Following the allocation of 25 coalmines to private firms by the Ministry of Power in ScheduleII & III under the Coal Mines (Special Provisions) Second

Ordinance, 2014, the month also saw the announcement of a number of coalmine development projects. Though most of the project promoters have not announced the size of their investments, the sector is expected to attract considerable investment in the next two to three years. The services and utilities (infrastructure) sector saw 504 new projects worth `13,146 crore and accounted for 27 per cent of the total fresh investment announced in March. Uttar Pradesh Rajkiya Nirman Nigam plans to develop a `641-crore police bhawan (signature building) at Sector-7, Gomtinagar Extension, in Lucknow district of Uttar Pradesh, on turnkey basis. Besides the above project, Asian Institute of Gastroenterology plans to construct a hospital with an investment of `500 crore at Survey No.136/1, Gachibowli in Ranga Reddy district of Telangana. The project, to be spread over 12.5 lakh sq. ft of land, comprises a building of G+4 floors with a capacity of 600 beds including various modern amenities. Shapoorji Pallonji & Co. Ltd is the civil contractor for the project. The 17 new mega food parks sanctioned by the Ministry of Food Processing, last month, is expected to bring in fresh investment of `2,333 crore. Out of the 17 MFPs, six have been sanctioned to state government authorities and 11 to private developers. Eighteen new power projects and 68 new distribution lines

PAGE 4

FRESH INVESTMENT BY TOP TEN STATES - MARCH 2015 States Uttar Pradesh Arunachal Pradesh Gujarat Maharashtra Telangana Tamil Nadu Madhya Pradesh Andhra Pradesh Kerala Punjab All India

Projects 94 5 45 101 33 51 38 34 22 16 616

`Crore 27,927.36 3,253.5 2,047.4 1,839.47 1,786.58 1,633.74 1,258.58 1,198.94 1,140.98 1,027.73 47,461.69

Share (%) 58.84 6.86 4.31 3.88 3.76 3.44 2.65 2.53 2.4 2.17 100

April 16-30, 2015 `100

Pages 16 ILLUSTRATION ONLY/WIKIMEDIA COMMONS

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NEWS

Projectmonitor, Mumbai, April 16-30, 2015

ILLUSTRATION ONLY/WWW.PWD.GOA.GOV.IN

Government of India has given special economic zone status as co-developers to GEMS Modern Academy and to an IT project of Maratt at SmartCity Kochi in Kerala. GEMS Education is building a school of international standard on an eight-acre plot at SmartCity. The project will have a built-up area of 2.5 lakh sq. ft that can host over 3,000 children. While, Bengaluru-based realty major Maratt will accelerate the development of its 3 lakh sq. ft facility for IT companies. SmartCity Kochi is getting ready to commission the 6.5-lakh sq. ft phase-I building in June and will also soon start work on phase-II. Odisha has proposed to build a coastal highway connecting Gopalpur in Ganjam district of the state to Digha in West Bengal to ensure efficient rescue and relief operations during cyclones. The proposal was discussed by state Chief Minister Naveen Patnaik and Union Minister for Road Transport and Highways Minister Nitin Gadkari. The CM has also asked the Centre to declare the highways connecting Jajpur and Jagatsinghpur as national highways and to upgrade the road network in tribal dominated districts to NH levels.

Goa clears 11 investment proposals worth `1,137 cr PM NEWS BUREAU

he Goa investment promotion board has cleared 11 proposals that includes the setting up of two marinas worth a total of `1,137 crore. The marinas are proposed to be developed at Bambolim and Sancoale. A marina is a specially designed harbour for docking of pleasure crafts and yachts, which often also includes service areas, recreational zones and water sports agencies. Yacht Haven (Goa) has proposed to build a marina at Sancoale in Mormugao taluka and Kargwal

Constructions intends to build a marina at Nauxim village in Tiswadi taluka. Besides the two marinas, the board has also cleared nine industrial projects. Varun Beverages, at Sanguem Industrial Estate, has been given permission to expand and commence operations of a project that requires an investment of `54 crore. Cartini India’s `75crore proposal to start operations at Marcaim Industrial Estate has also been approved. FabOxy Laundry Service has got the nod to initiate its `5.22crore project. Putzmeister Con-

crete Machines can go ahead construction work on its `4.5crore project at Verna Industrial Estate. Barmalt Malting (India)'s project worth `250 crore at Sanguem was also approved. A `2-crore project of Andrew Telecommunications India at Verna Industrial Estate has also been approved by the board. The investment promotion board also approved Ace Hotels & Resorts' `7.5-crore project at Quepem. Belladona Plasters also obtained approval to go ahead with its `30-crore project at Curti, Ponda.

BEST to seek REC loan for infrastructure upgrade PM NEWS BUREAU

rihanmumbai Electricity Supply & Transport Undertaking (BEST), the power distribution utility in the island city of Mumbai with a consumer base of 10.55 lakh, is planning take a `395-crore loan from Rural Electrification Corporation Ltd, to be repaid over 13 years. The proceeds of this loan will be used for a massive upgrade of BEST’s power transmission network. The plan includes replacement of all transformers and renovation of

substations, it is reported. It is learnt that some cables in BEST’s power network have been in use since 1930s. The ten-year upgrade plan involves replacement of all 2,500 distribution transformers at the rate of 30-35 per year. Similarly, the programme to replace all the 100-odd power transformers will start off by replacing threefour in the first year. Strengthening of the network will take place in the first year of the project and the replacement of all key equipment will be done over ten years. WWW.BESTUNDERTAKING.COM

Telangana Irrigation and CAD Department has invited bids for construction of Dindi balancing reservoir of SLBC Tunnel Scheme. The scope of work is construction of Dindi balancing reservoir of SLBC tunnel scheme across Dindi river, near Mothia Thanda of Teldevarapalli village, Chandampet mandal, in Nalgonda district of the state. The estimated cost of this project is `399.53 crore and the work is to be completed in 36 months. Government of Andhra Pradesh is planning to invite global tenders to select a master developer for a new state capital, Amaravathi, on the banks of river Krishna in the Vijayawada-Guntur region. The developer will be selected through the Swiss Challenge method as agreed by the state cabinet. In Swiss Challenge, a developer is asked to come up with a proposal for the plan or project. Then, others who are interested will be allowed to present their plans. If the new developer comes up with a proposal lower then the earlier one, the first developer will be given a chance to match that offer. If he does, he will be awarded the proposal and, if not, the latter will be given the mandate. So far, 33,000 acres of land in the capital region has been bought over by the state government. Haryana State Industrial & Infrastructure Development Corporation has invited tenders for development of an access-controlled six-lane of KundliManesar section from km 0.00 to km 83.320 in Haryana on BOT-Annuity basis (balance work). The total value of the project is `1,774 crore and the completion period is 24 months. Rolta Power is planning to invest `1,000 crore in the next five years to expand capacities and meet demand. The company, which entered the solar power sector in September 2014, with 40 MW capacity for manufacturing photovoltaic modules in Mumbai, is expanding its capacity to 100 MW. Rolta Group will raise funds internally to fund its expansion. Source: www.projectstoday.com

UP unveils projects valued at `7,500 cr

PM NEWS BUREAU

ttar Pradesh Chief Minister Akhilesh Yadav unveiled infrastructure projects worth nearly `7,500 crore in Noida, Greater Noida and Yamuna Expressway. The package includes projects worth over `5,000 crore in Noida and `1,500 crore in Greater Noida.

Projects under Yamuna Expressway Industrial Development Authority will be worth around `900 crore. As per information, projects to be inaugurated in Noida include the foundation-laying of the 28-km NoidaGreater Noida Metro track; eight substations valued at `659 crore; an 8,000 vehicle multi-

level car park worth `750 crore; and a super-speciality paediatric hospital and postgraduate institute worth `701 crore. An upgrade in traffic and road facilities, including flyovers, elevated roads, bridges and underpasses costing an estimated `2,033 crore is also part of the project list. This

includes an elevated pedestrian pathway from Botanical Garden Metro station to Sector 18, for `58 crore, and the long-awaited Intelligent Traffic Management System for the Noida-Greater Noida e-way, costing `43 crore. Major projects in Greater Noida include 3,000 multi-storey housing units costing around `604 crore and the 85 cusecs Ganga Jal project at `303 crore. Other projects include three sewage treatment plants, power substations, police and fire stations and solar plants. Projects to be inaugurated in YEIDA include two 220kV substations costing `300 crore, besides an IT hub for `15 crore and `500 crore worth of housing units under the Samajwadi Awas and MIG schemes.

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NEWS

Projectmonitor, Mumbai, April 16-30, 2015

MP gets its first private power line VENUGOPAL PILLAI

he power transmission sector of Madhya Pradesh recently witnessed its first project commissioned in PPP mode. Kalpataru Power Transmission, on April 9, 2015, announced that it began commercial operations on the transmission line meant to evacuate power from the 2x250-MW Satpura extension power project of the state power utility Madhya Pradesh Power Generation Company Ltd. The 400kV DCDS line traversing 240 km to connect Sarni and Astha was commissioned

in 16 months, two months ahead of schedule. Speaking to Projectmonitor from Jabalpur by phone, a senior official from the Planning & Design division of Madhya Pradesh Power Transmission Company Ltd said that this was the first instance of PPP in the power transmission sector of Madhya Pradesh. Dwelling more on the project, the official, who did not wish to be quoted, said that the project was awarded using the viability gap funding mechanism. Differing from the tariff-based mechanism, the bidders in this case were asked to quote a

grant that they would expect from the nodal agency to build, own and operate the project for a concession period of 25 years. The official also noted that this was also only the second power transmission in India to be developed using the VGF mechanism. Interestingly, Kalpataru Power Transmission was associated with even the first project. The project in question was the Jhajjar power transmission line developed in Haryana by a consortium of Kalpataru and Kolkata-headquartered Techno Electric Engineering.

Building plans in Delhi to be fast-tracked DEBDEEP CHAKRABORTY

he Ministry of Urban Development has constituted a high-powered review and monitoring committee for fast tracking approval of building plans with land area of 5,000 sq. metres or more for commercial and industrial purpose and 10,000 sq. m. or more for residential use in the national capital. The objective behind setting up of the committee is to foster a business friendly environment in Delhi. Till now, getting building plans approved by the concerned urban local bodies was an uphill task and the process of securing No Objection Certificates and other clearances from various authorities was cumbersome and experienced inordinate delays. The World Bank had tracked the procedures, time and cost for constructing a standardised warehouse in Delhi as part of its Doing Business project which measures and compares regulations relevant to the life cycle of a small to medium sized domestic business in 189 economies. The most recent round of data collection for the project was completed in June 2014. The information collected by the World Bank to assess the time and costs involved in obtaining necessary licenses and permits, completing required notifications and inspections and securing utility connections for construction of a standardised warehouse in Delhi shows that the process of requesting and obtaining building permit from the

Municipal Corporation of Delhi (trifurcated into three bodies â&#x20AC;&#x201C; North Delhi Municipal Corporation, South Delhi Municipal Corporation and East Delhi Municipal Corporation in 2012) takes 60 days to complete. The time required to complete the other related procedures vary. While a no tax due certificate from the MCD can be obtained within two days, securing an occupancy permit after completion notice from the same agency may take up to six to eight weeks. Besides the Municipal Corporation of Delhi, there are a host of other agencies such as Fire Department, Delhi Police, District Forest Office, Delhi Jal Board and Delhi Pollution Control Board from whom builders need to get approvals for construction. The involvement of multiple agencies makes the process of obtaining construction permits time consuming and prone to delays. The committee will meet at least once every month and review and monitor all cases relating to sanction of building plans having land area of 5,000 sq. metres or more for commercial and industrial purpose and 10,000 sq. metres or more for residential use to ensure that such plans are scrutinised and approved in a time bound manner within 30 days from date of application. Scan the QR code to read the full report at www.projectsmonitor.com

ILLUSTRATION ONLY/WWW.KALPATARUPOWER.COM

Kalpataru Power Transmission was awarded the Satpura transmission line project in April 2013 when

it quoted a grant of `60.75 crore. Out of this, `56.54 crore has been funded as equity support during

construction phase, while the balance `4.21 crore will be O&M support. The project is being developed by a special purpose vehicle Kalpataru Satpura Transco Pvt. Ltd. During the concession period, the SPV expects to generate revenues of `38 crore per year. Madhya Pradesh is planning to offer more intrastate power transmission projects on PPP basis but the official did not wish to share more details. Various state governments have so far adopted the PPP model in the power transmission space, albeit using different modalities like joint venture with state power utility, viability gap funding mechanism and tariffbased competitive bidding. Maharashtra, Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh are some of the states in question.

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PM INTERVIEW

Projectmonitor, Mumbai, April 16-30, 2015

‘Bearings play a vital role in industrial growth’ — S. Sivaramakrishnan, General Manager - Marketing, New Business Development and Strategic Planning, Timken India Ltd

Timken India Ltd, a subsidiary of Timken Company, is a leader in bearing technology. The company offers friction management solutions that maximise performance, fuel-efficiency and equipment life in various industries. S. Sivaramakrishnan, in an email interaction with Prashant C. Trikannad, spoke about the critical role played by bearings in Indian industry.

Can you briefly tell us about your company since its incorporation in India in 1987? Timken India Ltd, a subsidiary of Timken Company, started its operations in 1989. In keeping with global standards, the first state-of the-art manufacturing facility was set up in Jamshedpur, Jharkhand, in 1992. To cater to the growing market, Timken subsequently set up a manufacturing facility in Chennai, Tamil Nadu, in 2008. The Timken Technology Centre in Bangalore is one of the four Timken innovation and development centres around the world, which provides our customers a unique opportunity to access global pool of engineering expertise and the latest technological advancements. In India, Timken has launched its first Gear Service facility outside of the United States in Raipur, Chhatttisgarh. With a shop area of 33,000 sq. ft and spread over two acres, this dedicated facility supports all servicing and repair requirements of large industrial gear boxes apart from offering a host of key services that address the gearbox needs of every customer. Apart from this Timken has sales offices in Delhi, Kolkata, Pune, Ahmedabad, Chennai, Bangalore and Jamshedpur.

What kind of products does Timken manufacture and what is your plant capacity? At Timken we engineer, manufacture and market mechanical power transmission and friction management components. Our bearings, gearboxes, chain and related products and services support diversified markets worldwide. Our portfolio ranges from a wide range of anti-friction bearings and housed units. We also have a significant portfolio of adjacencies like couplings, seals, lubricants and lubricators, chains and gears. Our Jamshedpur plant manufactures taper roller bearings up to 8 inch outside diameter and our Chennai plant up to 24 inches outside diameter.

Which key sectors does your company cater to in India? What are some of the main applications for your products? Around the world and in a variety of industries, customers improve their performance by turning to Timken. Our employees deliver value by working closely with customers to provide friction management and power transmission solutions that cater to their specific industry and applications. The main applications for our products are in the aerospace, agriculture, automotive and heavy truck, cement and aggregate industries, construction equipment, mining, power generation and energy, gear drives, health and machine tools, paper, primary metals, rail and wind energy industries.

How critical is the role of bearings and its related systems in industrial growth? Bearings played a pivotal role in the development of various industries and also helped industrial revolutions and technological advancements, as it allows the new industrial machinery to operate more efficiently. Bearings are highly engineered components and is a huge industry and is also fundamental for the capital goods industry as it provides the principal industrial equipment base for the manufacturing industries. Thus, in that way the global manufacturing industry relies on precision components like bearings for its core activities. Looking at the other way, the global economic activities and global consumer spending would decide the growth of the industrial production and in turn, the use of bearings in manufacturing. The bearing industry, therefore, has developed a strong correlation with the global economic growth and economic activities. Technologically the bearing industry has simultaneously developed alongside the other segments such as gears and lubricants. The advances brought in metallurgy – microstructure alloys and heat treatment, has in turns helped other industrial areas to develop, newer technological frontiers such as coatings. The

502 greenfield projects announced in March PAGE 1 helped the electricity sector attract fresh project investment worth `31,134 crore. Apart from PFC’s `25,000-crore Etah UMPP project, SEW Mago Chu Power Corporation announced

three hydropower projects worth `1,100 crore each, in Arunachal Pradesh. Besides the above mega projects, Welspun Energy plans to set up a 100-MW solar-based power unit in Tamil Nadu with an investment of `700 crore. The

FRESH INVESTMENT BY SECTOR — MARCH 2015 Projects

` Crore

Share (%)

Manufacturing

4,153.25

8.75

Mining

120.84

0.25

Electricity

30,009

63.23

504

13,146.97

27.7

31.63

0.07

616

47,461.69

100

Sectors

Services & Utilites Irrigation

FRESH INVESTMENT BY OWNERSHIP — MARCH 2015

All Sectors

Ownership

Projects

` Crore

Share (%)

Government

397

36,370.2

76.63

Central Government

28,351.67

59.74

State Govt.

301

8,018.53

16.89

Private

219

11,091.49

23.37

Private (Indian)

212

10,435.49

21.99

656

1.38

616

47,461.69

100

Foreign Total

company signed a power purchase agreement with Tamil Nadu Generation and Distribution Corporation in March. Among the states, Uttar Pradesh topped the investment chart with 94 projects worth `27,927 crore and accounted for 58 per cent of the total fresh investment emanated in March

2015, while Maharashtra attracted the highest number of new projects - 101 projects entailing a total investment of `1,839 crore. Visit www.projectstoday.com or call 1800-2101-213 to subscribe to ProjectsToday

complex gauging challenges have helped the global metrological industry to innovate and grow to the next level. Newer statistical methods have emerged from the bearing industry, which are today the standard techniques used for the fatigue life components. New processes to manage the complex supply chains have emerged from this industry. Thus, bearings as an industry have played a vital part in the industrial growth and thus advance the benefit for human kind.

What are some of the breakthroughs led by Timken in bearing technology in India? 1. Adapt: A combination bearing inner CRB and outer SRB - great product for castors and paper and pulp applications. 2. FE bearing: Fuel efficient bearings used in pinions – increases vehicle efficiency up to 1 per cent. 3. High performance SRBs: Innovative new cage design – gearboxes runs much cooler. 4. Shaft Guard technology: To eliminate shaft damage due to clamping in case of WIR bearings. 5. SRNB product: New generation sealing technology for rolling mill bearing.

What is the current market scenario for bearings in India and where do you see it moving in the current year? The general mood of the nation is “positive” and we are particularly looking forward to infrastructure build and manufacturing growth in India. During the lean periods, we invested in new product and new business development and we believe we are positioned very well to ride the growth path.

What are your company’s expectations in 2015-16? 2015-16 will be best year for Timken in India.

Do you have investment plans in coming months? We continue to look for investment opportunities to cater to both, domestic demand and also exports. Services is another area that could attract additional investment.

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TRANSPORT & LOGISTICS

Projectmonitor, Mumbai, April 16-30, 2015

WWWWIKIMEDIA.ORG

JNPT to raise `3,000 cr for road expansion plan J PM NEWS BUREAU

awaharlal Nehru Port Trust is planning to raise a foreign currency dollardenominated loan of `3,000 crore to meet its road expansion plan. JNPT, in consortium with NHAI and CIDCO, is converting a six-lane evacuation corridor into 12 lanes over the next two years. The port trust is

expanding the road to make the port, the biggest container handling port in India, more efficient in terms of loading and unloading of cargo which remains stuck for long durations due to congested roads. The widening of the evacuation corridor is one of the three major bottlenecks that JNP, located at Nhava Sheva near Mumbai, faces along with dredging of the channel from the

JSW to expand Jaigarh Port PM NEWS BUREAU

SW Infrastructure has planned to expand the capacity of Jaigarh Port from the present 15 million tonnes to 65 million tonnes. As part of the expansion, it will have seven terminals which will include an LNG terminal, a container terminal and a petroleum terminal. A total investment of `10,000 crore will be made into the project over the next five years. Jaigarh Port, which was inaugurated in August 2009, is the first deepwater, all-weather, private port in Maharashtra. The company has also tied up with Hiranandani Energy (HEnergy), a subsidiary of real estate firm Hiranandani Group, to set up an 8-million tpa regasi-

fication plant at the port and a pipeline facility with GAIL (India) Ltd to cater to the huge LNG demand. The company is in the process of signing a formal concession agreement with HEnergy for 25-30 years. The regasification plant will require an investment of around `6,000 crore by H-Energy and will include a pipeline facility to be set up with GAIL. Hiranandani Energy recently entered the energy business and is setting up another 6-million tpa floating regasification offshore LNG plant on the coast of Digha, West Bengal, with an international player. The project is aimed at West Bengal and later the Assam market through a pipeline to be shared with Bangladesh. WWW.JSW.IN

existing 14 metres to 15 metres and expansion of port capacity. The company is waiting for the final report on feasibility of capital dredging of the JNP channel, as mentioned, which is expected by August 2015 after which the port trust will invite tenders for the dredging work. The work may also require additional funds of `2,000 crore to `3,000 crore. Singapore-based PSA is setting up the fourth terminal

where construction work is progressing on schedule and is expected to be commissioned in 2018. This will add 5.8 million twenty feet equivalent units (TEU) to the existing capacity, while DP World is expanding its terminal capacity by 0.8 million TEU by the end of 2016. Dubai-based DP World, which is developing a new container terminal, is expected to partially commission the project by May 15, 2015, thus, adding around 0.3-0.4 million TEU to JNPâ&#x20AC;&#x2122;s total capacity of 4.5 million TEU. JNPT is also in the final stages of appointing a contractor for the SEZ for which the master plan is ready. The company will need to invest around `500 crore for setting up the facility while the companies setting up units will bring in another `3,000 crore as investment in the project. Meanwhile, JNPT handled 63.80 million tonnes of total cargo in 2014-15 against 62.33 million tonnes of cargo handled in the previous year. Of the total, share of containerised cargo was 56.93 million tonnes (89.24 per cent), liquid cargo 6.19 million tonnes (9.70 per cent) and remaining 0.68 million tonnes (1.06 per cent) was miscellaneous cargo in the form of dry bulk and break bulk. The port handled 4.467 million TEU of container traffic registering growth of 7.33 per cent in the last fiscal year, the highest ever container traffic since inception of the port and 56.13 per cent of the total container throughput of the countryâ&#x20AC;&#x2122;s major ports.

Coal India Ltd has said the 53-km Jharsuguda-Barpali railway link project in Odisha, to facilitate faster transportation of coal, is likely to be completed by 2017. However, the coal connectivity line in Tori-Shivpur-Kathautia area in North Karanpura, Jharkhand, would take some time. CIL announced the `4.7-billion Jharsuguda-Barpali rail link project, in January 2006, to link its Ib Valley coalfields in Odisha. Ministry of Road Transport and Highways has invited tenders for rehabilitation and upgradation of NH-18 in Andhra Pradesh to two lanes. The bids have been invited for the stretch from km 57.0 to km 108.850 of Pileru-Rayachoty section with paved shoulders including four-laning over 1.45 km (km 57.250 to km 57.800, km 65.700 to km 66.300 and km 83.450 to km 83.700) in Pileru-Vidya NagarKalakada town sections, on EPC mode. The `135.54-crore project is to be completed in 24 months. Delhi Metro Rail Corporation has invited bids for standard gauge cars for the Noida-Greater Noida Metro Project. The bids are invited for design, manufacture, supply, testing, commissioning and training of 78 standard gauge cars. The project is estimated to cost `700 crore. Source: www.projectstoday.com

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ENERGY

Projectmonitor, Mumbai, April 16-30, 2015

Banks to finance green energy projects ILLUSTRATION ONLY

DEBDEEP CHAKRABORTY

India’s efforts to expand the share of renewable energy in the electricity mix has received a major boost with as many as 30 banks and financial institutions recently committing to finance green energy projects of 70,505 MW total capacity for `3,52,640 crore. The commitments for financing green energy projects till 2021-22 were made by banks and financial institutions from both public as well as private sector at RE-Invest 2015, a renewable energy global investors meet and expo held in New Delhi from February 15-17. Among public sector banks, State Bank of India committed `75,000 crore for 15,000 MW renewable energy capacity. The sector also received significant financing commitments

from other public sector banks and financial institutions such as Indian Renewable Energy Development Agency Ltd (`30,000 crore), India Infrastructure Finance Company Ltd (`20,000 crore), IDBI Bank (`14,700 crore), Power Finance Corporation (`15,000 crore), Bank of Baroda (`12,500 crore), Bank of India (`10,000 crore), Union Bank of India (`7,500 crore), Bank of Maharashtra (`7,500 crore), Andhra Bank (`5,000 crore), Punjab National Bank (`2,500 crore), State Bank of Mysore (`2,000 crore), Indian Overseas Bank (`2,000 crore), Canara Bank (`1,600 crore), State Bank of Travancore (`1,250 crore), Indian Bank (`1,100 crore), Dena Bank (`1,000 crore), United Bank of India (`1,000 crore), Vijaya Bank (`1,000 crore), State Bank of Patiala (`500 crore), Bharatiya Mahila Bank (`250 crore) and

Oriental Bank of Commerce (`240 crore). The private sector banks and financial institutions that gave commitments to finance renewable energy projects at the event included ICICI Bank (`37,500 crore), L&T Finance Holdings Ltd (`32,500 crore), PTC India Financial Services Ltd (`30,000 crore), Yes Bank (`25,000 crore), Axis Bank (`10,000 crore), South Indian Bank (`3,000 crore), HDFC Bank (`2,000 crore) and Lakshmi Vilas Bank (`1,000 crore). Even though clean energy development is considered vital for a country’s economic growth, in India, securing affordable financing for renewable energy projects remains a major challenge. Owing to information gaps and also due to policy flaws such as sectoral lending limits, many domestic banks perceive financing of renewable

BANKS AND FIS THAT HAVE GIVEN GREEN ENERGY FINANCING COMMITMENTS AT RE-INVEST 2015 Bank/Financial Institution Capacity (MW) State Bank of India 15,000 ICICI Bank 7,500 L&T Finance Holdings Ltd 6,500 IREDA 6,000 PTC Financial Services Ltd 6,000 Yes Bank 5,000 India Infrastructure Finance Co. Ltd 4,000 IDBI Bank 3,000 Power Finance Corporation 3,000 Bank of Baroda 2,500 Axis Bank 2,000 Bank of India 2,000 Union Bank of India 1,500 Bank of Maharashtra 1,500 Andhra Bank 1,000 South Indian Bank Ltd 600 HDFC Bank 400 Indian Overseas Bank 400 Punjab National Bank 500 Canara Bank 320 State Bank of Mysore 285 State Bank of Travancore 250 Indian Bank 220 Dena Bank 200 United Bank of India 200 Vijaya Bank 200 Lakshmi Vilas Bank 200 State Bank of Patiala 100 Oriental Bank of Commerce 80 Bharatiya Mahila Bank 50 Total 70,505 Source: Ministry of New and Renewable Energy energy projects to be risky. India’s total renewable power installed capacity as on December 31, 2014, stood at 33.8 GW. The renewable energy sector in the country is primarily driven by private companies. The gov-

Amount (` Crore) 75,000 37,500 32,500 30,000 30,000 25,000 20,000 14,700 15,000 12,500 10,000 10,000 7,500 7,500 5,000 3,000 2,000 2,000 2,500 1,600 2,000 1,250 1,100 1,000 1,000 1,000 1,000 500 240 250 3,52,640

ernment has been promoting private investment in renewable energy through an attractive mix of fiscal and financial incentives, in addition to preferential tariffs that are provided at state level.

Gujarat boasts highest RE potential ujarat has the highest potential for renewable power generation among states, reveals the ‘Energy Statistics 2015’ released by Ministry of Statistics and Programme Implementation. As on March 31, 2014, India’s total potential for renewable power generation was estimated at 1,47,615 MW. Out of the total potential, wind power accounted for 69.6 per cent or 1,02,772 MW, small hydropower accounted for 13.38 per cent or 19,749 MW, biomass power accounted for 11.88 per cent or 17,538 MW and bagassebased cogeneration accounted for 3.39 per cent or 5,000 MW. As per the geographic distribution of the estimated renewable power potential, Gujarat’s share stood at 25.04 per cent or 36,956 MW. The other states with high potential for renewable power generation were Karnataka (13.08 per cent share or 19,315 MW), Tamil Nadu (11.17 per cent or 16,483 MW) and Andhra Pradesh (11.16 per cent or 16,476 MW). The total installed capacity of grid interactive renewable power as on March 31, 2014, was 31,692.18 MW. Out of the total installed generation capacity of renewable power, wind power accounted for about

66.69 per cent followed by biomass power (12.66 per cent) and small hydropower (12 per cent). Tamil Nadu had the highest installed capacity of grid connected renewable power (8,070.26 MW) followed by Maharashtra (5,630.20 MW) and

Gujarat (4,430.20 MW), mainly on account of wind power. Out of the 47.52 lakh biogas plants installed in the country, 8.56 lakh plants were in Maharashtra. Other states with large number of biogas plants

Source: Ministry of New and Renewable Energy

ILLUSTRATION ONLY

included Andhra Pradesh, Karnataka, Uttar Pradesh and Gujarat, each with more than 4 lakh biogas plants. Out of the 1,221.26 MW solar cookers installed, 824.09 MW were installed in Gujarat and 222.9 MW in Rajasthan. As on March 31, 2013, a total of 1,418 water pumping wind mills systems had been installed and 7,971 remote villages and 2,183 hamlets electrified. The publication titled ‘Energy Statistics’ is brought out every year by the Central Statistics Office under Ministry of Statistics and Programme Implementation. The current edition is 22nd in series. It includes the latest data on reserves, installed capacity, potential for generation, production, consumption, import, export and wholesale price of different energy commodities. — Debdeep Chakraborty

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Projectmonitor, Mumbai, April 16-30, 2015

CLP India, one of the largest foreign investors in the Indian power sector, has announced that its wholly-owned subsidiary, Jhajjar Power Ltd, had issued corporate non-convertible bonds for the 1,320-MW coal-fired power plant at Jhajjar, Haryana. The plant is CLP’s biggest asset in India. JPL is raising `476 crore through issue of secured, partially-guaranteed, redeemable, non-convertible debentures with final maturity of 11 years. Essar Power, a leading private sector power producer, commissioned Unit-I of 30 MW at its 120-MW captive Paradeep power plant in Odisha. In the coming months, the balance 90 MW (3x30) would be commissioned in phases. The 120-MW coal fired power plant will meet the power requirement of Essar Steel’s 12-million tpa integrated palletisation facility in Odisha, comprising a palletisation plant at Paradeep and a beneficiation plant at Dabuna, connected through a 253-km slurry pipeline. On completion, Essar Steel would have access to cheap and reliable power supply.

IOC to invest `45,000 cr over next three years I PM NEWS BUREAU

ndian Oil Corporation Ltd plans to spend about `45,000 crore over three years to build petrochemical plants and LNG terminals, lay pipelines and upgrade its refineries, it is learnt. Petrochemicals, gas and pipeline will be the focus areas for IOC's future expansion. The public sector oil refining company intends to invest around `15,000 crore in 201516 and a similar amount in each of the two successive financial years. IOCL is setting up two units to manufacture polypropylene and MEG, or ethylene glycol, at Paradip, in Odisha, which will

L&T-Areva sign pact on nuclear project PM NEWS BUREAU

arsen & Toubro Ltd and Areva of France have signed an MoU for cooperation to maximise localisation for the EPR nuclear power plant to be built at Jaitapur in Maharashtra. Areva’s EPR nuclear reactor is a third-generation advanced pressurised water reactor. According to L&T, the MoU with Areva represented a major step forward for the company in the field of Pressurised Water Reactor technology and was a significant addition to its existing capabilities as well as the lead role it played in equipment manufacture, construction and project management for PHW reactors in India’s domestic nuclear power programme. The MoU covers partnership between L&T and Areva in manufacturing key nuclear island equipment, valves, piping, electrical, instrumentation and engineering work.

account for a significant part of the capital expenditure. The future units will manufacture products that offer largescale opportunity and are able to substitute imports. The corporation sold 2.12 million tonnes of petrochemicals in domestic and overseas markets in 2013-14. Meanwhile, B. Ashok, Chairman, IOCL, has said that natural gas had become the most favoured fuel in the last three decades with a 24 per cent share in global primary energy sector. Speaking of the gas scenario in the country, he observed that the demand for natural gas was rising sharply and its share was likely to reach about 20 per cent in primary energy consumption in the coming decade. He added

further that the higher share of natural gas would help resolve key issues such as energy security and environmental concerns and address criticalities of fuel subsidy and currency fluctuation. He highlighted the fact that IOCL had a presence in the entire value chain of gas, from gas assets in upstream to gas infrastructure and gas marketing. Emphasising on the need for carving a niche presence in the gas infrastructure, Ashok informed that setting up a regasification terminal at Ennore Port, Tamil Nadu, and having a joint authorisation for laying 4,000 km of gas pipelines was a step in that direction.

Kanara Chamber of Commerce and Industry of Mangalore, Karnataka, has requested the Ministry of Petroleum and Natural Gas to set up an LNG handling unit at New Mangalore Port. KCCI asked the government to sanction a floating storage regasification unit to handle LNG at the port. The proposal for setting up the LNG terminal has been pending for over a decade. GVK Group has successfully synchronised with the Northern Grid the first unit of the 330-MW Alaknanda Hydro Power Company Ltd’s project at Shrinagar in Uttarakhand. It has been tested to generate the full rated capacity of 82.5 MW. Post that, some operational tests were also successfully conducted. The hydro project consists of four units of 82.5 MW each, and is situated on river Alaknanda at Shrinagar in Tehri/PauriGarhwal, Uttarakhand. NTPC has commissioned the 200-MW Unit-III of Koldam hydropower project located on Sutlej river along the border of Bilaspur and Mandi districts in Himachal Pradesh. With this, the total installed capacity of Koldam HEP stands at 600 MW and the total installed capacity of NTPC is 44,598 MW. The hydro project will provide electricity to Himachal Pradesh, Jammu & Kashmir, Delhi, Haryana, Punjab, Rajasthan, Uttar Pradesh and Chandigarh. Ministry of Power, Coal and New and Renewable Energy has announced investment of `10,000 crore in the power sector of the eight northeastern states, including Sikkim. The Centre has already given its nod to a scheme for strengthening the T&D system in Arunachal Pradesh and Sikkim. It is estimated to cost `4,754 crore. In addition, the government has approved the North Eastern Region Power System Improvement Project for the other six states in the region. Government of India plans to restart Teesta hydropower project in Sikkim with an investment of `13,000 crore. Various projects are being implemented in the region, including the 6,000-MW Bishwanath Chariali-Agra transmission lines to be completed in three-and-a-half months, and the `1,000-crore Bongaigaon-Balipara and `500-crore Silchar-Imphal transmission line projects.

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oday, 1.2 billion people call India home, 377.1 million of whom live in cities. In the next 40 years, India's population is expected to grow by nearly half a billion. In the next two decades alone, 225 million more people will be living in Indian cities. These staggering numbers offer us a clear picture of the acute pressure that our ever growing population shall put on the most essential natural resource, water, the demand for which will keep rising each day, even as its supplies decline annually. Nationally, Prime Minister Narendra Modi has pledged to ensure sanitation facilities for all families by 2019. Water is increasingly being viewed as a strategic resource and if India can deploy adequate technology to treat water, it could significantly expand its water supply and as better water means better public health and economic development. Knowing well the severe pressure due to its universal demand and diminishing supplies, water needs to be appropriately managed to meet the challenges of ensuring its availability to all people across the globe in reasonable quantities. In doing so, authorities need to address the hurdles that come in the way of making available clean drinking water for all citizens; ensuring there are adequate water treatment and wastewater management plants; available water supply, both for potable and non-potable use. Our economy, industry and most importantly, our people, would reap the benefits. Be that as it may basically tending to such issues isn't sufficient. Since water has customarily been a free asset for centuries, water and wastewater utilities need to address these challenges cost

4/15/2015

ndia is in the midst of a massive urbanisation cycle with a majority of Indians expected to live in urban conglomerations within the next five years. This movement has seen many small towns rapidly improving their standards of living and becoming more metro-like in character. These cities are characterised by good public infrastructure such as electricity, piped water, sewage and sanitation services, telecommunications, public transport systems, educational facilities and access to healthcare. However, in most areas the quality of these services does not match international norms. Water is used as the carrier liquid for conveying human waste away from point of generation therefore water and sanitation are implicitly linked and constitute critical infrastructure required for citizens in modern India. The recent campaigns such as Swachh Bharat by the Government of India has put renewed focus on the importance of treating waste water generated by industries and human habitations. In the last half century, large

Projectmonitor, Mumbai, April 16-30, 2015

Wastewater management is need of the hour

ILLUSTRATION ONLY/WWW.BLOG.SCHNEIDER-ELECTRIC.COMILLUSTRATION ONLY

With conventional sources of water under huge stress, we are compelled to consider long-term plans for better management of the valuable natural resource, says Pankaj Mishra, Industry Business Segment Head - Water and Wastewater, Schneider Electric India. effectively, especially because the water market is fiercely competitive and cost constrained. Besides, water management has to be carried out amidst rising energy costs whereas water quality, energy conservation and waste emission norms grow more stringent. Against this complex backdrop, Schneider Electric helps customers curb operating costs, while simultaneously meeting the challenges of water quality, sustainable development and stringent regulations. In such a scenario, energy consumption is the core challenge that helps address the other issues, since it accounts for 30% of such facilities’

operating costs. These costs can be controlled by making processes more efficient. For example, leakage, waste and carbon emissions all indicate that the processes have scope for improvement. Even when efficiencies are maximised, operating costs can still be high. The most effective, most efficient and most sustainable solution then lies in managing and optimising energy usage.

Big challenges, big opportunities While the above problems seem like a major challenge, Schneider Electric believes these denote immense opportunities too. Because the bigger the chal-

lenges, the bigger the opportunities. There is a lot the country can and should do to become a wiser steward of its water resources. First among these must be creating adequate treatment infrastructure. By 2030, water demand in India will grow to almost 1.5 trillion cubic metres with supply at approximately 740 billion cubic metres. This gap will need to be bridged by several initiatives primary of which should be Privatepublic partnerships (PPP) since the government cannot carry out a task of such multitude on its own and will require the private sector to also chip in. However the government shall need to provide incentives to the private sector for

active participation Significantly, Schneider Electric has longstanding global expertise in both the water industry and energy management. Based upon this, solutions are designed for water and wastewater treatment. These are powered by EcoStruxure, an Active Energy Management Architecture. One such customised waterwastewater solution is the simple, ready-to-go, scalable Energy Optimisation System. This Energy Management Information System (EMIS) helps manage and optimise customers’ energy at the plant level and across multiple plants and/or sites. EMIS can save utilities up to 5 per cent

just by making real-time energy intelligence available to operators and managers. This intelligence is actionable and can help find ways of cutting operating costs by up to 25 per cent. On average, energy consumption can account for up to 30% of a site’s operating costs. Based upon its modular design, the Energy Optimisation System allows customers to utilise only the functions they need. Later, as energy management needs and investment capacities evolve, these can be scaled up.

Saving costs In 2013, Schneider Electric also introduced StruxureWare for

Water, a new software suite to help water and wastewater utilities reach operational excellence and save up to 30 per cent energy by giving full visibility into energy, operation and process control across the entire water cycle. StruxureWare for Water is open, scalable and easy to incorporate into third-party and legacy systems. In real-time and from plant floor to top floor, it transforms massive amounts of data into meaningful information to all stakeholders, enabling the utility to make informed decisions and take decisive action. The software seamlessly integrates all process control in the water or wastewater infrastruc-

Green technology can improve water quality Wastewater treatment provides usable water for domestic, agricultural and industrial purposes, helps to conserve and enhance water in quality and quantity, and prevents degeneration of surface and ground water resources. Green technologies, today, provide impressive water quality at competitive costs without contributing to global warming, writes Vikram Karunakaram, Managing Director, DeltaPure Water India Ltd. public investments by Government of India in sewerage and sanitation facilities have resulted in near complete sewerage coverage in metro cities. Subsequently, Metro and Tier-II cities have set up large treatment facilities to treat the collected wastewaters. It is to be noted that sewerage networks are very capital intensive and typically capital cost of the network is of the order of five to ten times the capital cost of the treatment facility. These government sector investments in sewerages have increased the debt burden on public institutions such as municipal authorities. The debt servicing and operation costs of the collection network,

coupled with the high operating costs of conventional sewage treatment systems have resulted in nearly 80 per cent of installed sewage treatment systems being underutilised or non functional due to lack of O&M outlays. This has lead to the resultant severe pollution in outlying areas and finally the rivers of India. The above state of affairs have lead to laws and policy frameworks that enjoin private real estate industry to treat wastewaters at point of generation if the scale of real estate development exceeds 2 lakh sq. ft in built-up area, this is particular enforced in areas where civic authorities have not been able to provide sewerage

systems. In other areas large real estate developers and most industries have been tasked to treat waste streams inside their townships and manufacturing units. Private sector led demand for these services have led to an intense flurry of innovation in the decentralised treatment system space. As noted above decentralised treatment systems are attractive since they reduce the capital investment in collection systems. Unfortunately, conventional treatment technologies do not scale down efficiently. At small scales (<1 mld) conventional aerated treatment systems such as MBBR, SBR, ASP type

technologies are unable to deliver robust treatment quality due to fluctuations in wastewater, power supply and availability of skilled manpower. Water is a scarce resource: It was this observation nearly 30 years ago that lead a team of scientists and researchers led by Prof. H.S. Shankar, Department of Chemical Engineering, IIT Bombay, to embark on creating ecologically engineered treatment systems harnessing the native principles of the carbon cycle in order to remove organic wastes from water. Wastewater treatment provides usable water for domestic agricultural and industrial purposes; helps to con-

serve and enhance water in quality and quantity; in addition, prevents degeneration of our water sources of surface and ground. Green technologies today provide impressive water quality at competitive costs without contributing to global warming. This technical specification presents a green biological purification engine using a natural novel high efficiency oxidation process variably known as CSF (constructed Soil Filter) or SBT (Soil Biotechnology) developed at IIT Bombay by Prof. H.S. Shankar and his students. Soil Biotechnology (SBT) is covered by two US patents (Patent Nos.6890438B2 & 7604742B2) and two Indian

patents (Patent Nos.203744 & 203425) all assigned to IIT Bombay. CAMUS-SBT is advanced version of the basic SBT technology which uses less space, is easier to operate and offers superior water quality. The key advantage of CAMUSSBT technology is 1) Low power requirements (can be powered by solar) 2) Green ambiance 3) Robust performance under low flow conditions 4) Fully automatic with remote sensing and monitoring options 5) Noiseless and Odourless, and 6) Can be integrated into any green space such as along compound walls, internal gardens, road medians, below roads and inside basements.

ture – from electrical distribution and motor and pump control, to chemical and biological treatment, filer consoles , safety and energy monitoring. By combining real-time water network data, historical analyses and hydraulic modelling, StruxureWare for Water helps reduce operation costs and service interruptions while maintaining consistent water pressure, flow and improving water quality. This

software suite is a big leap in how water is managed across wide geographic areas, since it allows water managers to garner data points about how energy is being used to move water and how this energy can be used more effectively. Worldwide, plant managers have realised the benefits of energy management and optimisation, which is an invaluable tool in significantly reducing

energy-related operating costs while ensuring sustainable, quality water supplies. Some equipment and processes, such as pumps and aeration tanks, are particularly energy hungry and afford opportunities for major savings. Energy management helps optimise energy use and reduce related costs by: monitoring, measuring and reporting energy consumption; appraising and comparing sourcing contracts against real consumption; assessing alternative onsite power generation from sources such as biogas from wastewater, hydraulic turbines and solar power; comparing energy use and costs across plants, processes and loads to discover opportunities for improving energy efficiency (for example, aeration tanks account for between 30 per cent and 60 per cent of a plant’s and site’s total energy consumption); drawing up targets and action plans to boost energy management. The challenge is huge, but not intractable. Meeting it will require political will and technological and policy innovation – but as with water crises everywhere, India no longer has the luxury of inaction. There is cause for hope. India's investment in water and sanitation, including treatment systems, is still low but has increased over the past decade but if India is to ensure overall progress, it must manage its water resources efficiently and this is only possible if we take wastewater treatment seriously

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Wastewater management is need of the hour

ILLUSTRATION ONLY/WWW.BLOG.SCHNEIDER-ELECTRIC.COMILLUSTRATION ONLY

Big challenges, big opportunities While the above problems seem like a major challenge, Schneider Electric believes these denote immense opportunities too. Because the bigger the chal-

Saving costs In 2013, Schneider Electric also introduced StruxureWare for

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STUDY

Reinforced Earth India Pvt. Ltd, a wholly owned subsidiary of Soletanche Freyssinet Group, adopted its Reinforced Earth technology to construct high retaining walls along a flyover or grade separator as part of the Ghat-Ki-Guni tunnel project in Jaipur. Rajasthan.

Projectmonitor, Mumbai, April 16-30, 2015

GHAT-KI-GUNI TUNNEL PROJECT

Retaining walls

Advantages

hat-Ki-Guni with heritage rich buildings on both sides is the only eastern entry and exit points in Jaipur, Rajasthan. It was a highly accident-prone area. Traffic pollution was damaging the heritage within a 2 km range of the vicinity. This was a concern both to Government of India and Government of Rajasthan. The expansion of Jaipur city towards NH-1 was also affected. To find this solution, a tunnel was proposed. Along this tunnel a flyover or

Reinforced Earth wall during construction. grade separator had to be built so as to match the FRL of the tunnel. Reinforced Earth tech-

SALIENT FEATURES RE wall type Owner Designer Contractor Construction

GeoMega with TerraTee panels Jaipur Development Authority Reinforced Earth India Pvt. Ltd Rohan-Rajdeep Tollways Ltd 2011-12

PROJECT SPECIFICATIONS Structure System Panel type Area Maximum height Design live load Design life Soil reinforcement

(13m), special attention was given to design the Reinforced Earth wall for such a tall structure. Well graded fill material having angle of internal friction (U) 32o and coefficient of uniformity (Cu) 5 was used as reinforced and retained fill material, which is available in this area. The other challenge was to execute the Reinforced EarthR structure during summer. The temperature in this area is as high as 50o C during summer season. We had to alter the working hours accordingly to meet the project schedule.

Reinforced Earth walls TerraTee RCC (1.6m x 2.0m x 0.1m) 4,168 m 13m 22kPa 100 years GeoStrap5 with GeoMega connector

nology was adopted for construction of retaining walls, especially for the walls having higher heights. Jaipur Development Authority awarded the work to RohanRajdeep Tollways Ltd through the competitive bidding system of the state. After being appointed as the contractor for the work, Rohan-Rajdeep contacted RECo India for a suitable solution for the retaining structures. RECo India presented its concept design along with the technical capabilities. The concept was convincing to the client and Rohan-Rajdeep assigned RECo India as its system provider for Reinforced Earth structures.

Challenge The location of this project is in desert area and also on the valPhotos: Source: Reinforced Earth India Pvt. Ltd

ley of a hillock. Any sort of rainfall would result in waterlogging. Challenge was to design the Reinforced EarthR wall, which can sustain the temporary flood condition during construction. Also, at the same time we required to work out a methodology and planning to construct the wall during the monsoon period. Reinforced EarthR wall also had to sustain toe erosion during upcoming flood.

Solution In a detailed design process, RECo India used in-house technical knowhow to design the Reinforced EarthR wall using GeoMegaR System using GeoStrap5 as soil reinforcement. Traffic surcharge load for the design was considered as per IRC 6. Since the height of the structure was quite significant

The construction of the Reinforced EarthR wall greatly reduces the overall cost of the project as it served as a replacement of proposed conventional retaining structure. This also helped in saving overall project duration and easing the construction process even during monsoon period. This was only possible due to use of precast elements for construction. Reinforced EarthR technology was found to be best solution for working in waterlogged areas. This technology is also environment friendly because it requires less steel and cement, which reduces carbon dioxide emission substantially.

Outcome

Time and budget expectations of the client were met successfully. Reinforced EarthR wall proved to be economical and a time saving alternative as compared to conventional cast-in-situ walls. Manpower requirement was not very high, which is a strong motivation for similar projects in the future. RECo India successfully proved that Reinforced EarthR walls are better alternative for areas which are prone to flooding. Source: Reinforced Earth India Pvt. Ltd

PGCIL seeks shareholder nod for fund-raising PM NEWS BUREAU ower Grid Corporation of Ltd has sought shareholders’ approval to raise up to `13,000 crore from domestic and external sources in the current fiscal through eight tranches. The nod was sought through a postal ballot, the last date for which is May 15, 2015. The company said in a filing on the BSE that the funds are for financing the capital expenditure and provide loans to its wholly-owned special purpose vehicles handling its projects acquired under tariff-based competitive bidding. Shareholders’ nod was also sought for providing `1,400 crore of funds to PowerGrid’s wholly-owned special purpose vehicles Vindhyachal Jabalpur Transmission Ltd, Gadarwara (A) Transco Ltd and Gadarwara (B) Transco Ltd. The company is seeking shareholders approval after its board had approved total investment of `1,481 crore in its various projects to be commissioned in the next two-three years. These investment proposals include the one for installing transmission equipment at an estimated cost of `1,071 crore for the western region and setting up of transformers in Northern Region at an estimated cost of `63.56 crore.

Reinforced Earth wall after construction.

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Projectmonitor, Mumbai, April 16-30, 2015

India gearing up to provide quality power to all by 2019 penetration of highly intermittent and variable renewable energy sources as well as decentralised distributed generation presents a number of challenges in grid integration. Given the government’s plans for gigantic capacity addition in the coming period through both conventional sources as well as renewables, there is need to explore and adopt the latest technological developments in the field of transmission, distri-

DEBDEEP CHAKRABORTY

he Indian government is working towards creating an ambitious grid programme in order to fulfill Prime Minister Narendra Modi’s vision of providing quality power to all by 2019, Minister of State with independent charge for Power, Coal and New and Renewable Energy Piyush Goyal said while inaugurating the fifth edition of the international exhibition and conference GRIDTECH at Pragati Maidan in New Delhi on April 8. Organised by Power Grid Corporation of India Ltd with the support of Ministry of Power, GRIDTECH is aimed at providing a platform to manufacturers, suppliers, academicians and consultants for showcasing their state-of-the-art products, technologies and expertise in the field of transmission, distribution, renewable energy integration, smart grid and communication. The biennial event along with the concurrent conference programme also gives an opportunity to power utilities, planners, policy makers, regulators, manufacturers, research institutions, academicians and consultants to get exposed to emerging

technologies in the transmission and distribution domain. “The Prime Minister’s vision for 24/7 quality power for all depends on the transmission and distribution sector to reach the bottom of the pyramid. With the new technologies we are bringing in, we will now create an ambitious grid programme which will meet the country’s demand,” Goyal said at the inauguration ceremony. Speaking on the occasion, Devendra Chaudhury, Special Secretary, Ministry of Power, said the entire power sector was gearing up to meet the government’s vision of power for all and that an access platform had to be created to help provide electricity to the entire population. PGCIL Chairman and Managing Director R.N. Nayak pointed out that the government’s ambitious plan to provide 24x7 power to all in the country by 2019 would require deployment of latest technologies in the field of transmission, distribution, intelligent devices, information and communication technology. GRIDTECH 2015, he added, was the foremost platform where all leading stakeholders reiterated their commitment to bringing about a transformative change

NAREDCO conclave on Housing for All

ith its focus on ‘Vision Maharashtra – Housing for all by 2022,’ realtors apex body NAREDCO (National Real Estate Development Council) will host a day-long housing conclave in Mumbai on April 22. Chief Minister Devendra Fadnavis will inaugurate the conclave which will discuss the issue of affordable housing for the masses in Maharashtra, while trying to offer solutions for achieving the goal of providing shelter for all by 2022. KPMG in India is the knowledge partner

for the event which is expected to attract over 600 delegates. NAREDCO national president Sunil Mantri said, “We are delighted that the government is earnest in its resolve to finding a solution to the housing needs of the people. We expect to deal with the amended development rules which we feel must attend to the common man’s dream of having a shelter of his own. We developers are more than willing to partner with the government to achieve the goal of housing for all by 2022.”

in the sector to ensure quality and affordable power for all citizens. The three-day GRIDTECH 2015 witnessed the participation of several leading players in the power sector, both from India and abroad. The participating companies got an opportunity to showcase their expertise in various domains of the power sector, launch new products and technologies and identify business opportunities in the electricity market. The conference programme that was held alongside the exhibition on April 8 & 9 saw industry experts exchanging views and insights on integration of renewables and emerging trends in substation technology, HVDC and FACTS technology, smart grid, distribution as well as energy efficiency. Like in previous editions, GRIDTECH 2015 brought together domestic and international manufacturers, planners, policy makers, investors, consultants and research institutions on a single integrated platform while showcasing latest technologies and expertise in the transmission and distribution domain. India’s electricity demand is estimated to increase fivefold over the next two decades. In order to meet the increased demand, the government has set very ambitious targets with the objective of enhancing generation capacities. Currently, more than 70 per cent of the electricity demand is met through fossil fuels. The renewable capacity penetration stands at just 13 per cent with 32 GW of installed renewable generation capacity. The government’s focus now is on increasing energy contribution from renewable resources and boost renewable capacity penetration to about 30 per cent by 2030. Increasing

bution, intelligent devices, information and communication technology, high-speed computing and visualisation. Already, new technologies in the form of WAMs, FACTS, VSC-based convertors, High Temperature Super Conductor Line, fault current limiter, O&M techniques, dynamic reactive compensation, flexible resources including energy storage, Advances Metering Infrastructure, demand side management/ demand response and other smart grid functionalities are being progressively adopted throughout the power supply value chain in the country. Experts point out that it is imperative to continuously explore new technologies for making the Indian transmission and distribution network more efficient.

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INSIGHT

Projectmonitor, Mumbai, April 16-30, 2015

Keep on going, and the chances are that you will stumble on something, perhaps when you are least expecting it. I never heard of anyone ever stumbling on something sitting down. — Charles F. Kettering, American inventor

Time to move from ideas to implementation ndia has resources and ideas but now there is need to focus on productivity and implementation, said Dr. Subir Gokarn, Director of Research, Brooking India, and Senor Fellow, Brooking Institutions, while addressing the session on Ideas that could change the Indian Economy at the National Conference and Annual Session 2015 of Confederation of Indian Industry in New Delhi. Dr. Gokarn said that in the infrastructure sector, the PPP model had not worked as per expectations in past few years and now there was a need for FPTP i.e. first public and then private. He highlighted the importance of accessing sources of funds such as private equity and venture capital in order to finance the infrastructure sector. Referring to the 14th Finance Commission, Dr. Gokarn pointed out that since states now had more funds being allocated by the Centre, it was time that states increased their focus on implementation and providing services which earlier the Centre was doing. Highlighting the importance of learning by sharing, Dr. Gokarn said there should be knowledge and experience sharing amongst states which would help them to successfully implement various schemes by learning from the best practices being followed by other states. Dr. Ajit Ranade, Senior President and Chief Economist, Aditya Birla Group, said despite having high saving rates, the flow through the financial system was limited. As a result, large part of the savings did not come into the financial system which needed to be addressed. He focused on some innovative models like Gold Demat scheme which could improve the percentage of savings being converted into investments. He further mentioned that small businesses were badly affected by excessive paperwork. There should be more enforcement raj and less inspector raj. Dr. Ranade highlighted that the ratio of road and rail usage for logistics purpose in India was 70:30 which needed to be reversed to be save logistics cost and increase competitiveness worldwide. While highlighting the role of cooperatives, he said there was a need for shareholders capitalism in agriculture sector. Further, he focused on the need to save electricity wastage and identify ways to capitalise on the digital world, which was going to be one of the exciting areas in times to come. R. Seshasayee, Executive Vice Chairman, Hinduja Group, said India was amongst the highest savers in the world but there was a problem of transmission because of which only a limited part of savings got converted into investment and capital formation. He focused on the importance of converting ideas into actual implementation while saying that ideas were there but there was a need for skills and implementation. He mentioned that India needed to improve incremental capital output ratio for better GDP growth. Productivity of capital assets had stagnated or come down in some sectors like power.

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Shashikant Hegde Dr. M.S. Kapadia Prashant C. Trikannad Venugopal Pillai Sandeep Menezes (Mumbai) Debdeep Chakraborty (New Delhi)

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RBI projects GDP at 7.8% DR. M.S. KAPADIA

he Reserve Bank of India has kept major policy rates unchanged in its first ‘Bimonthly’ Monetary Policy Statement 2015-16 announced on April 7. Thus, overnight policy rate (repo rate) under the liquidity adjustment facility remains at 7.5 per cent (after two 25 bps reductions each in January and March). There is also no change in other rates: Reverse Repo rate continues to be 6.5 per cent, Marginal Standing Facility rate and the Bank Rate 8.5 per cent, CRR 4.0 per cent and SLR 21.5 per cent. RBI would continue to provide liquidity to banks under shortterm LAF up to 0.25 per cent of bank’s NDTL and that under 7day and 14-day repos at 0.75 per cent bank’s of NDTL. Even as the apex bank moved to ensure comfortable liquidity through pro-active liquidity management in tune with the change in monetary policy to accommodative stance, past two rate cuts have not led to easing of lending rates by banks, despite poor credit offtake. In fact, a lacking transmission and the possibility that there could be upside tilt in balance of risks in inflation, have influenced RBI’s decision to maintain status quo in policy rates. By the way, taking a hint, major banks like SBI, ICICI Bank and HDFC Bank have come out with some cuts in their lending rates after the policy announcement.

Assessment Global growth is likely to firm up through 2015 and 2016, supported by stronger recovery in the advanced economies and soft energy prices. Downside risks mainly emanate from the slowdown in China, geopolitical risks surrounding oil prices and the uneven effects of currency and commodity price movements.

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Sanjeev Singh Abhishek Mishra Vijay Bhoir Bharat Metharamani Raghuvansh Pandey

CIRCULATION & SUBSCRIPTION Head - Circulation : Raju Chendavankar Support - Circulation : Anil Mungekar Subscription : Rosebin Mukadam Printed, published and Edited by Shashikant Hegde on behalf of Economic Research India Pvt. Ltd and published at Economic Research India Pvt. Ltd, Sterling House, 5/7 Sorabji Santuk Lane, Off. Dr. Cawasji Hormasji Street, Dhobi Talao, Mumbai 400002, and printed from Print Vision, 31, Jyoti Industrial Estate, Near Makhamali Talao, Noorie Baba Darga Road, Thane (West) 400601. Editor: Shashikant Hegde

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KEY MACRO INDICATORS Indicator

2014-15

2015-16

7.5

7.9

Gross fixed capital formation/GDPmp (%)

28.6

29.3

Money Supply (y-o-y increase)

12.3

13.5

Bank credit (y-o-y increase)

Combined fiscal deficit/GDPmp (%)

6.5

6.3

Merchandise trade deficit/GDPmp (%)

6.9

6.3

CAD/GDPmp (%)

1.2

1.0

GDP at basic GVA valuation (y-o-y increase)

Source: 33rd Round of Survey of Professional Forecasters Domestically, the industrial sector, and in particular, manufacturing appears to be regaining momentum, with the growth of production in positive territory for three consecutive months till January. Capital goods output has been relatively lumpy and volatile, and more positive readings are needed to firm up assessment about a durable pick-up in investment demand. The persisting contraction in consumer durables production for over two years could be reflecting the underlying weakness in consumption demand as well as higher imports. Adverse impact of unseasonal rains and hailstorms in March is still unfolding and according to initial estimates, this has adversely impacted 17 per cent of the sown area under the rabi crop. Services sector emanates mixed signals. Coincident indicators, like railway and port traffic, domestic and international passenger traffic, international freight traffic, tourist arrivals, motorcycle and tractor sales as well as bank credit and deposit growth point to subdued activity in relevant services. Export performance has been progressively weakening and contraction set in on both nonoil and petroleum product exports since December 2014. Obviously, fragile external demand conditions and the soft-

ness in international commodity prices have taken a heavy toll on the country’s export performance.

Projections CSO has estimated a robust economy pick-up during 201415, with GDP growth at GVA valuation put at 7.5 per cent. However, leading and coincident indicators suggest a likely downward revision of this estimate when fuller information on real activity for the last quarter becomes available. RBI projects 7.8 per cent GDP growth for 2015-16, higher by 30 bps than in 2014-15, but with a downward bias to reflect the still subdued indicators of economic activity. Uncertainty surrounding the arrival and distribution of the monsoon and unanticipated global developments are the two major risks to baseline growth projections. CPI inflation is projected at its current levels in the first quarter of 2015-16, moderating thereafter to around 4 per cent by August but firming up to reach 5.8 per cent by the end of the year. Even as the Monetary Policy Framework Agreement signed with the Government of India will shape the stance of monetary policy in 2015-16 and succeeding years, the apex bank

PAGE 13

FROM OUR ARCHIVES October 3, 2005

Boom in captive power business rder enquiries for setting up of captive power plants are pouring in, say consultants involved in construction of captive and O cogeneration power plants. “There is a lot of demand for captive power plants and our order book has almost doubled compared to last year,” says Prashant Desai, Deputy General Manager, Fichtner Consulting. “The market is growing very fast and the demand-supply gap is very big.” There has been a substantial increase in interest, especially after the National Electricity Policy freed captive generation from all controls. Thermax Cogen, whose order book at present stands at Rs.400 crore compared to net sales of Rs.136 crore in 2004-05, says there is demand from across the country, and major industries from which the demand has poured in are steel and cement. “Sponge iron plants where waste recovery process has high economic viability is showing a lot of interest in captive power generation and the orders are coming in from states having a number of mini steel plants like Chhattisgarh, Gujarat, Andhra Pradesh and Orissa,” says a consultant from Chennai who has seen 30 per cent increase in projects.

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GUEST ARTICLE

Projectmonitor, Mumbai, April 16-30, 2015

Challenging suspension bridge: A vulnerable but vital asset Long-span cable-stayed and suspension bridges have an important role to play in the transportation network and therefore their design, construction, and subsequent surveillance and maintenance must be performed very accurately, writes Vanja Samec, Global Director - RM Bridge, Bentley Systems GmBH, a software company that produces solutions for the design, construction and operation of infrastructure.

ong-span suspension bridges represent some of the most remarkable, yet most vulnerable, assets in road networks. Due to their important role in the transportation network, the design, construction, and subsequent surveillance and maintenance must be performed very accurately. During the design process, bridge designers must consider and meet many challenges, including the highly non-linear behaviour of the structure, the optimisation of the geometry of suspension cables, and the effects of wind. The continuous change of structural systems is a major reason for non-linear structural analysis. For cable-supported bridges, special optimisation procedures are necessary. For long cable-stayed and suspension bridges, bridge designers must consider dynamic wind effect. The extraordinary, ultrathin design of these structures yields significant susceptibility to windinduced vibrations. Steel bridges, especially, allow for extraordinarily slender main girder cross sections. Sophisticated analysis methods must be applied to determine critical wind velocities for all types of known wind effects. As a result, dynamic wind analyses are increasingly important to bridge engineers. These phenomena include vortex shedding and the lock-in phenomenon, across-wind galloping and wake galloping, torsional divergence, flutter phenomena, and wind buffeting. Today, computer programs should provide the best possi-

ble support for this design process. One such product is Bentley RM Bridge, which has been well-tested and proven on major projects to become a globally recognised, expert system capable of solving virtually any bridge design or analysis problem. For example, RM Bridge was used successfully by engineering designers on the Hardanger Bridge, the longest long-span suspension bridge in Norway. This bridge, which opened August 2013, crosses the Hardanger fjord. It has a main span of 1,310 metres and is ranked No.10 on the list of longest suspension bridges in the world. The Norwegian road authority, Statens Vegvesen, in close collaboration with TDA Norway and Bentley Systemsâ&#x20AC;&#x2122; Austria team in Graz, performed the design work. The bridge deck consists of an orthotropic steel box, with a width/depth value of 17.3 metres/3.2 metres. The stiffness of the main girder is relatively small when compared to other bridges of this span type. The distance between the two main cables is only 14.5 metres, which means that the Hardanger Bridge is one of the most slender bridges in the world. Among some of the specific challenges on this project were the highly non-linear behaviour of the structure; the need to optimise the geometry of the suspension cables while designing the sag profile; the non-linear behaviour due to the traffic loading; and optimisation of the erection procedure, wind loading, and wind-induced vibrations.

RBI projects GDP at 7.8% PAGE 12 has stated that it will stay focused on ensuring that the economy disinflates gradually and durably, with CPI inflation targeted at 6 per cent by January 2016 and at 4 per cent by the end of 2017-18. The Reserve Bank will look through both seasonal as well as base effects to appraise inflation scenario. With this end in view, the apex bank desires continuation and even acceleration of policy efforts to unclog the supply response so as to make available key inputs such as power and land. Further progress on redirecting of public spending from poorly targeted subsidies towards public investment and on reducing the pipeline of stalled investment will also be helpful in containing supply constraints and creating room for monetary accommodation.

Numerical wind investigations of the main girder and pylons were performed with a CFD module that applies the vortex particle method to describe the air flow around the cross-section. Future projects in Norway that will require innovative bridge and tunnel technologies, as well as experienced engineers and reliable software applications, include the E39 road between the cities of Kristiansand, Stavanger, Bergen, and Trondheim, which will become a ferry-free highway route.

Main cables

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& CONTRACTS

Projectmonitor, Mumbai, April 16-30, 2015

ILLUSTRATION ONLY/WWW.LNTECC.COM

Man Infraconstruction Ltd bagged an order valued at `105 crore from Gujarat Pipavav Port for executing civil construction work for port infrastructure. Port Pipavav is managed and operated by APM Terminals, the port and terminals company of the maritime giant A.P. Moller-Maersk Group. APM Terminals is one of the largest container terminal operators in the world. ABB India won a `90-crore order from Techno Electric and Engineering Company Ltd for delivery of gas-insulated switchgear and transformers for a 400/220kV substation at Patran in Punjab. The project is expected to be completed in 2016. The scope includes the design, engineering and supply of 400kV & 220kV GIS, modules. In addition, it will also deliver two 400kV auto transformers, which are normally deployed in power applications to interconnect systems operating at different voltage levels.

L&T secures orders worth `5,492 crore T PM NEWS BUREAU

he construction arm of L&T has won orders worth `5,492 crore across various business segments in March 2015. Buildings & Factories: The business secured orders worth `2,768 crore including add-ons. A major order was received for the construction of a mixed use development complex in Mumbai consisting of eight residential towers and a commercial building spread over an estimated total built-up area of 35 lakh

sq. ft. The scope involves civil, structural, architectural, finishes, mechanical, electrical and plumbing works. Power Transmission and Distribution: The business has bagged orders worth `984 crore in both the international and domestic markets, including add-ons. New orders and variations were won from various customers in the Middle East which includes engineering, procurement and construction of 220kV & 132kV substations and power upgradation works at certain

KNR Constructions wins three EPC orders PM NEWS BUREAU NR Constructions Ltd, an WWW.KNRCL.COM infrastructure development company based on Hyderabad, announced that it had bagged three EPC orders worth of `729.05 crore towards the following projects: TNRSP II/EPC01: Upgrading Kanchipuram-Vandavasi Road (SH=116) from km 14/300 to km 36/700 and upgrading Sdras-Chengalpattu-Kancheeepuram-Arakonam-Thiruthani Road (SH-58) from km 0/000 to km 26/811. The `184.97crore order is to be completed in 36 months from the appointed date. TNRSP II/EPC02: Upgrading Arcot-Villupuram Road (SH-4) from km 29/000 to km 110/165 and km 113/325 to km 114/600 at an estimated cost of `320.02 crore. The order is to be completed in 42 months from the appointed date. TNRSP II/EPC06: Upgrading Malliyakarai-Rasipuram-ThiruchengodeErode Road (SH-79) from km 0/000 to km 30/600 and km 51/400 to km 71/300. The `24.06-crore contract is to be completed in 36 months from the appointed date

facilities. Water and renewable energy: This business received an order worth `188 crore from the Telangana rural water supply and sanitation department for the construction of intake wells, water treatment plants and a raw water pumping main in Medak district of the state. The order includes associated electrical, mechanical and instrumentation works. Additional orders worth `1,552 crore were received from various ongoing jobs of other businesses of L&T Construction.

A consortium led by GMR Infrastructure Ltd won a `5,080-crore order for the eastern dedicated freight corridor. The consortium was issued a Letter of Award for construction of a 417-km long railway project on EPC basis. TheGMR-led consortium emerged the lowest among five bidders for the project through an international competitive bidding process. The eastern dedicated freight corridor project funded by World Bank is divided into two packages i.e. from Mughalsarai to Karchana (near Allahabad) for 180 km and from Karchana to Bhaupur (near Kanpur) for 237 km in Uttar Pradesh. KEC International Ltd, an RPG Group company, got new orders worth `1,565 crore in its transmission and distribution and cables businesses. In the cables business, the company secured orders worth Rs.107 crore for the supply of power and telecom cables. In the T&D business, the company received orders worth `1,458 crore in India, Bangladesh, Oman, Malaysia and the Americas. While `1,185 crore worth of orders came from India, `251 crore orders were international. A joint venture comprising Ramky Infrastructure and T.K. Engineering Consortium won an EPC order worth `829 crore in Assam. As per the order, the scope of work is four laning of NH-52 from end of Biswanath Chariali bypass (km 208.00) to Gohpur (km 265.50) (total length of 57.50 km) in the northeast state. The project needs to be completed within 1,095 days from the appointed date. In this JV, Ramky Infrastructure holds 70 per cent stake and T.K. Engineering Consortium holds the remaining 30 per cent. RPP Infra Projects Ltd won an order worth `46.50 crore from Hindustan Prefab Ltd, a Government of India Enterprise, for the construction of 2,071 prefabricated toilet blocks for government schools in Andhra Pradesh. Last month, the company bagged a `16.60-crore order from Mangalore SEZ. Supertech has said it will invest around `2,400 crore over five years to develop a township project at Gurgaon in Haryana. The project will come up on 140 acres of land, which Supertech bought from Parsvnath Developers, in September 2014, at a cost of `665 crore. The company has paid for the land and will raise about `500-700 crore of bank debt to meet construction cost.

J. Kumar Infra bags contracts in Mumbai PM NEWS BUREAU

ILLUSTRATION ONLY/WWW.JKUMAR.COM

. Kumar Infraprojects Ltd secured orders worth `367.31 crore from Mumbai Metropolitan Region Development Authority and Municipal Corporation of Greater Mumbai. The details of the orders are as follows: Work order worth `155 crore received from MMRDA for design and construction of flyovers at Savita Chemical junction, Ghansoli Naka junctions and Talavali Naka junction, and a vehicular underpass at Mahape junction, on ThaneBelapur Road. Letter of Acceptance received from MCGM for improvement of side strips of S.V. Road in mastic asphalt in H/West & K/West wards in western suburbs (W-276) worth `125.23 crore, in a joint venture. The company stake is 51 per cent i.e. `63.87 crore. Letter of Acceptance received from MCGM for improve-

ment of side strips of Linking Road in mastic asphalt in H/W & K/West wards in western suburbs (W-277) worth `151.09 crore, in a joint venture. The company stake is 51 per cent i.e. `77.05 crore. Work order received from

MCGM for improvement of various roads in asphalt in P/South in western suburbs (AW-89) worth `34.93 crore, and in P/North in western suburbs (AW-90) worth `36.46 crore. The total amount is `71.39 crore

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ORDERS & CONTRACTS

Projectmonitor, Mumbai, April 16-30, 2015

BHEL wins largest project in March 2015 I PROJECTSTODAY

n March 2015, a total of 185 contracts worth `25,906.19 crore were awarded, as per the data compiled by ProjectsToday. These domestic and overseas orders, spread across various industrial sectors, were bagged by 120 Indian companies. Further, of the 185 finalised contracts, 13 were won by Indian companies to execute orders overseas. The newly-formed Telangana state utility, Telangana State Power Generation Corporation, awarded public sector Bharat Heavy Electricals Ltd an EPC contract worth `5,000 crore for setting up a 4x270 MW thermal power plant at Manuguru in Khamman district of Telangana. The project is targeted to be commissioned in 24 months on a fast-track basis with both TSGENCO and BHEL setting up teams to expedite clearances and execution of the project. BHEL’s scope of work includes design, engineering, manufacture, supply, construction, erection, testing and commissioning of 4x270 MW thermal sets on EPC basis. The key equipment for the contract will be manufactured at BHEL’s Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bengaluru and Jhansi plants, while the company’s Power Sector - Western Region will be responsible for civil works, and erection and commissioning of the equipment.

Roads The road sector saw finalisation of 51 new contracts worth `4,240.68 crore. The largest contract was finalised by Delhi PWD for a `1,664-crore job to L&T for construction of phase-III of Barapullah Elevated Corridor in Delhi. The project connects Sarai Kale Khan and Mayur Vihar through the elevated corridor across river Yamuna. The scope includes construction of 550-metre six-lane extra dosed

PHOTO: WWW.TSGENCO.TELANGANA.GOV.IN

Overseas

A power plant of Telangana State Power Generation Corporation. bridge and 4.3-km four-lane elevated road, a flyover at Mayur Vihar, connecting loops, cycle tracks, road works, architectural lighting and other allied works. The project is scheduled for completion in 30 months. The third largest contract of the month, valued at `1,432 crore, was also awarded to L&T, by Ministry of Defence, for design and construction of seven offshore patrol vessels for the Indian Coast Guard. The contract is part of the government's initiative to strengthen India's coastal security. OPVs are long-range surface ships capable of operating in maritime zones of India, including island territories, with helicopter operational capabilities. Their roles include coastal and offshore patrolling, policing the maritime zones, control and surveillance, and anti-smuggling and anti-piracy with limited wartime roles.

Power Sixty-three contracts worth `8,697.45 crore were awarded in the power distribution sector

BHEL commissions two thermal power units PM NEWS BUREAU

HEL successfully commissioned another 600-MW thermal unit in Chhattisgarh. The unit was commissioned at Dainik Bhaskar Power Ltd’s upcoming 2x600 MW thermal power project located at Dhabra in Janjgir Champa district of Chhattisgarh. This is the second unit of this power project. The first 600-MW unit was commissioned by the company in 2014. Earlier, BHEL had commissioned the second 800-MW supercritical boiler at Sri

transmission system associated with Tehri- II PSP.

Damodaram Sanjeevaiah Thermal Power Plant at Krishnapatnam in Nellore district of Andhra Pradesh. This is the second 800 MW rating and also the highest rating (800 MW) indigenous boiler to be commissioned in India. The first 800-MW boiler was commissioned by BHEL at the same project in August 2014. The commissioning of the two 800-MW boilers at Krishnapatnam was an important development for the country seeking to achieve self-reliance in the field of contemporary, state-of-theart supercritical technology, BHEL said

in March 2015. Power Grid Corporation of India Ltd owned 52 of the 63 contracts finalised during the month. The largest contract in this sector, worth `355.88 crore, was awarded to New Northeast

Electric Group High Voltage Switchgear Co. for augmentation of the existing 400kV Koteshwar pooling station to 765/400kV voltage level and extension of 765/400kV Meerut substation under the

In March 2015, Indian companies bagged 13 overseas contracts worth `3,993.34 crore in the petroleum oil and gas, power distribution, commercial complexes, roadways, coal and lignite-based power, and computer software sectors from countries such as UAE, Saudi Arabia, Oman, Bangladesh, Indonesia, Kenya, Paraguay and USA. The largest overseas contract, worth `732 crore, was bagged by L&T (Oman) L.LC., from Government of Oman for construction of a commercial project and its site-wide infrastructure in the country. The scope involves civil, structural, architectural, electromechanical, finishes, speciality lighting, lifts, ICT systems, landscaping, water features, swimming pools and car park. Visit www.projectstoday.com or call 1800-2101-213 to subscribe to ProjectsToday

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Published on 1st and 16th of every month W.P.P. Lic No.MR/TECH/WPP-22/SOUTH/2015 Regd No. MCS/030/2015-17 Posted at Mumbai Patrika Channel Sorting Office, Mumbai 400001 on 1st/2nd and 16th/17th of every month

BACK PAGE

Projectmonitor, Mumbai, April 16-30, 2015

BHEL secures 72% market share in FY15 B B PM NEWS BUREAU

harat Heavy Electricals Ltd closed year 2014-15 with a 72 per cent market share in the power equipment market, according to a release issued by the PSU engineering firm. BHEL booked orders worth `30,814 crore during FY15 with the power sector cornering a share of 81 per cent in value terms. The industry sector booked orders valued at `5,221 crore while exports accounted for `720 crore. The outstanding order book position of BHEL crossed `1 trillion, as of March 31, 2015. The highlights of the year included the EPC order from Gujarat State Electricity Corporation Ltd for the 800-MW Wanakbori supercritical power plant in Kheda district. Received in September 2014, this is the first EPC order for 800-MW units in India, according to the BHEL release. In FY15 itself, BHEL received another EPC order for the 1x800-MW Kothagudem power plant from Telangana State Generation Company. Incidentally, BHEL and TSGENCO signed an MoU wherein BHEL will construct projects worth 6,000

Go-ahead for power projects in J&K

R&D spend touches 3.26% of turnover HEL spent 3.26 per cent on R&D during FY15 compared with 2.78 per cent in FY14. The company is regarded as amongst the highest R&D spenders in the country in the engineering and manufacturing segment, the BHEL release observed. The PSU engineering major filed 450 patents (including copyrights) in FY15, making it the highest ever filed in any fiscal year so far. One of the engineering company’s recent innovations includes the fuelflexible boiler that runs on both domestic and imported coal, and that too is varying combinations. BHEL would be deploying such boilers at the 4x270-MW Manuguru thermal power plant of Telangana State Generation Company.

MW for the said power utility. Out of this 6,000 MW, orders worth 1,880 MW have been placed. According to information available with Projectmonitor, several orders for 800-MW rating units have been placed by Indian power producers. However, in each case, the boilers and turbine-generator

was mandated to supply the boiler package that was incidentally commissioned during FY15. The BHEL release observed that the company commissioned 11,941 MW of power generation capacity in the domestic and overseas markets. This included 10,230 MW for domestic power utilities and

1,392 MW for captive and industrial plants. The remaining 319 MW were accounted for by four power plants in Rwanda, Sudan, Ethiopia and Oman, respectively. Scan the QR code to read a previous BHEL report at www.projectsmonitor.com

Cement industry on recovery path

PROJECTSTODAY

DEBDEEP CHAKRABORTY

henab Valley Power Projects Ltd has received the go-ahead from the Ministry of Power for setting up two power projects in Jammu & Kashmir. The projects are Dulhasti-II and stage-II of Uri-I, with a cumulative capacity of 940 MW. Dulhasti-II has been planned as a 460-MW project, downstream of 390-MW Dulhasti on Chenab basin in Kishtwar, while stage-II of the 480-MW Uri-I is to be set up downstream of Uri-I on river Jhelum, in Baramulla district. CVPPPL, a JV company of NHPC Ltd, JKSPDCL and PTC (India) Ltd, has been set up to tap 10,000 MW hydro potential of Chenab basin in Jammu. It is already working on three projects, namely 1,000-MW Pakal Dul, 600-MW Kiru and 520-MW Kawar on the basin. The company has hired consultants to prepare DPR of two projects and is expecting to start work in 2016 and commission them in six to seven years. At present, NHPC is generating 2,009 MW in J&K, the highest in any state. The projects owned by the corporation in J&K include Salal, Uri-I & II, Dulhasti, Sewa-II, NimooBazgo and Chutak.

packages have been ordered separately. Some cases in point are the Mundra UMPP (5x800 MW) of Tata Power in Gujarat, and the Sri Damodaran Sanjeevaiah Thermal Power station (2x800 MW) at Krishnapatnam of Andhra Pradesh Power Development Corporation. In the Krishnapatnam project, BHEL

he Indian cement industry has shown some recovery in FY15 after witnessing an alltime low demand and profitability the previous financial year. In the first nine months of FY15, growth in cement production picked up to 7.9 per cent as against 3.7 per cent in the corresponding period last year and 3 per cent in FY14. A February 2015 update on India’s cement sector by credit rating services and investment information provider ICRA attributed the growth to base effect and weak and delayed monsoons which extended the window for continuation of construction activities. The ICRA report noted that cement production declined by 8 per cent QoQ in the second quarter of FY14 due to arrival of monsoons but registered a healthy growth rate of 9.8 per cent YoY driven by base effect. The extension of monsoons in south and labor availability issues due to festive season slowed down growth in cement demand in October 2014, the report said, adding that cement companies undertook substantial price hikes the same month impacting demand. Cement production in the country declined by 1 percent YoY in Oct 2014. Though cement

PHOTO: WWW.RAMCOCEMENTS.IN

A representative picture of a Ramco Cements plant. demand picked up in November 2014, growth in production remained muted at 4.5 per cent in the third quarter of FY15. Taking into account factors such as political stability at the Centre, expectations of recovery in the economy and anticipated increase in infrastructure and private sector spending, the report said demand prospects for cement were likely to remain favourable. India’s cement industry has been seeing a slowdown in new capacity addition due to the supply glut in recent times. Between FY11-FY14, the industry added 65 million tpa cement capacity as against 92 million tpa in the preceding three-year period of FY08-FY11. The report said the slowdown in

demand (cement production grew by 5.8 per cent during FY11-FY14 as against 7.4 per cent during FY08-FY11) had resulted in decline in capacity utilisation from 77 per cent in FY12 to 72 per cent in FY14 despite slowdown in fresh capacity addition. It added that the industry was expected to add 25 million tpa capacity in FY15, 23 million tpa in FY16 and 8 million tpa in FY17 as against the peak addition of 50 million tpa in FY10. Analysing the industry’s expected capacity expansions region wise in the next two years, the report said the eastern region would lead with about 20 million tpa capacity addition during FY15-FY17 followed by northern region (13.4 million tpa). It added that the southern

region, which had witnessed highest capacity addition in the last five years, was going to see a considerable slowdown adding only 7.9 million tpa of capacity in the next two years. Assuming a demand growth of 8-8.5 per cent over the next three years, the report said the allIndia cement capacity utilisation was likely to improve from 72 per cent in FY14 to 75 per cent in FY16 to 79 per cent in FY17. It added that delays in project execution and project commissioning could result in capacity utilisation levels crossing 80 per cent by the end of FY17. Scan the QR code to read the full report at www.projectsmonitor.com